Robotics is one of the most exciting and innovative sectors in the world today. This sector has the potential to transform various industries, particularly manufacturing and healthcare by creating new opportunities for growth and efficiency. Robotics also offers a competitive edge for investors who are looking to balance long-term returns with exposure to cutting-edge technologies. Below are three high potential robotics stocks that I think are about to have a significant rally in share price.
Intuitive Surgical (ISRG)
Intuitive Surgical (NASDAQ: ISRG) is the pioneer and market leader in robotic-assisted surgery. The company’s flagship product, the da Vinci Surgical System, enables surgeons to perform minimally invasive procedures with enhanced precision, control and dexterity. The system has been used in over 13 million surgeries across various specialties such as urology, gynecology, general surgery and cardiothoracic surgery.
Intuitive has a strong competitive advantage due to its high-quality products, extensive patent portfolio and global distribution network. The robotics company’s revenue model also embeds a lucrative recurring element. This is tied to the services and operational leases related to the da Vinci product. ISRG also invests prudently but consistently in research and development to continue improving upon its technology and expanding its applications.
On July 20, ISRG released its Q2 2023 earnings and beat Wall Street analysts’ expectations on both revenue and EPS estimates. However, since the company noted new weight loss drugs were possibly eating into the growth in bariatric procedures, a target procedure for the business, the company’s stock stumbled. Because Intuitive Surgical’s core product growth remains impressive, this could be an attractive buying opportunity for investors before shares rally again.
Zebra Technologies (ZBRA)
Zebra Technologies (NASDAQ:ZBRA) is a leading provider of enterprise asset intelligence solutions, such as barcode scanners, printers, RFID tags, mobile computers and software. The company’s products ultimately help businesses track and manage their assets, data and workflows across various industries, such as retail, healthcare, transportation, and manufacturing.
The company also offers robotics solutions through Fetch Robotics, which provides robots for warehouse automation. The amalgamation of these diverse products with targeted end-markets have culminated in Zebra Technologies having a strong position in the growing market for enterprise asset intelligence solutions. This is bolstered by strong performance in Q1 2023 when the company beat analysts’ expectations.
Though Zebra’s main focus is not building fancy robots, its value-add to enterprise supply chains makes it vital to many businesses’ digital transformation efforts, and thus a good pick for investors wanting exposure to robotics, automation, and supply chain management solutions.
Teradyne (TER)
Teradyne (NASDAQ: TER) is a leading provider of automated test equipment for semiconductors, electronics, wireless devices and industrial automation. The company’s products help ensure the quality and performance of various devices and systems that power the modern world. The company’s robotics segments consist of Universal Robots, a leading supplier of collaborative robotic arms, and Mobile Industrial Robots, a leading maker of autonomous robots for industrial purposes.
Because Teradyne is both a supplier of robotics parts and a provider of autonomous robots, the company’s revenue streams are quite diversified. A strong position in the fast-growing semiconductor testing market also helps to offset any potential slack in the robotics segment. For example, in its Q2 2023 earnings Teradyne’s semiconductor testing segment stole the show. While the company surpassed both revenue and profits estimates, the robotics giant was aided by increased demand for semiconductors that power AI processes. For the quarter, TER reported revenue of $684 million and non-GAAP earnings per share of 79 cents.
The company’s stock has been performing well this year, rising over 30% so far. With spectacular AI-driven growth in Teradyne’s semiconductor testing business, the industrial robotics firm most likely has more untapped growth potential in the future.
On the date of publication, Tyrik Torres did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
